OMVIC Practice Test

Disable ads (and more) with a membership for a one time $2.99 payment

Dive into the OMVIC Practice Test and test your knowledge on laws, regulations, and ethical practices in the automotive industry. Perfect for aspiring dealers and salespersons to validate their expertise!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

What is the consequence for a dealer who sells a warranty without the required financial backing?

They must personally repair the vehicle
They are liable for all claims under the warranty
They receive a warning from the licensing authority
No consequences if it's a first-time offense

The correct answer is: They are liable for all claims under the warranty

Selling a warranty without the required financial backing can be a serious offense for a dealer. This means that in case of any claims made under the warranty, the dealer will have to personally pay for the repairs or reimburse the customer, as they will be held fully liable. Other incorrect options include receiving a warning from the licensing authority, which may not have as severe consequences, and having no consequences for a first-time offense, which may not be true according to the laws and regulations in place. It is important for dealers to ensure they have the necessary financial backing before selling warranties to avoid potential consequences.